Agri-agra loans still wanting
Loans extended to the agriculture and agrarian reform (agri-agra) sectors are still below bank compliance rates though loans in 2015 rose to P432.7 billion in 2015.
The Philippine Daily Inquirer reported that compliance for agriculture was at P401.2 billion, which was higher than the P327.3 billion compliance in 2014 by 22.6 percent.
As of end-2015, the compliance rate for lending to agriculture was 14.4 percent, way below the requirement of 15 percent of total loanable funds.
For agrarian reform, compliance for beneficiaries was P31.5 billion, slightly up from P31.4 billion a year ago.
However, it was only 1.11 percent even if the required lending was 10 percent of banks’ total portfolio.
The minimum amount required for agra loans in 2015 was P284.4 billion.
The bulk of agri-agra loans of P395.3 billion came from universal and commercial banks. The rest came from rural and cooperative banks (P21.8 billion) and thrift banks (P15.7 billion).